Spain | Asturias Economic Outlook 2024

Asturias' GDP could increase by 2.3% in 2024 and 2.0% in 2025, which would allow for the creation of 13,700 new jobs in the region in the biennium.

Key points

• Key points:
• In 2023, GDP growth could have reached 2.2% (0.3 pp less than in Spain as a whole), after 4.1% in 2022.
• Growth in Social Security enrollment has shown significant advances in recent months, with somewhat stronger increases than the regional average in the areas of Oviedo and Gijón. Spending with a card advances more in transport services, accommodation and bars and restaurants, supported by the good performance of tourism, especially from abroad.
• GDP could increase by 2.3% in 2024 (Spain 2.5%). The European economy is starting to show a gradual improvement. The price of raw materials has reversed part of the increase and the process of reducing interest rates has begun. The service sector shows gains in competitiveness and Asturias has the capacity to continue increasing hotel occupancy, both in high and low season. Housing is not a bottleneck as in other regions.
• Asturias' GDP is expected to maintain its growth rate at around 2.0% in 2025 (2.1% in Spain). If these forecasts are met, Asturias could be the community with the highest GDP per capita growth compared to pre-crisis levels. In addition, the unemployment rate will fall to 11.6% on average in 2025 and 13,700 new jobs could be created by 2025.
• There are some risks: the aging population is a constraint to domestic demand growth and employment growth; attracting talent and training the unemployed is key to offset the shrinking working-age population and labor shortages; economic policy uncertainty affecting investment; the need to move towards a better export structure.

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